Home sales fall 2.8% in February

National Multiple Listing Service (MLS) resale housing activity declined by 2.8% in February compared to the previous month, according to the Canadian Real Estate Association (CREA).

MLS attributes the lag in housing sales in part to fewer sales in Toronto where the city's new land transfer tax and storm activity have hit the housing market hard, according to CREA president Ann Bosley.

Across the board, the average residential property price in Canada has climbed 6.2% from last year, reaching $313,065 in February. British Columbia, which recorded its highest prices on record, and neighbouring Alberta were sluggish due to the rising housing price, said CREA chief economist Gregory Klump.

In contrast, Saskatchewan recorded its second highest monthly level, and Prince Edward Island, its third, and Newfoundland and Labrador showed record transaction levels for the first two months of 2008.